Adam Air Gets it Wings Clipped

Government Suspends Operating Permits of Indonesian Low-Cost Airline.

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(4/11/2008)

The worst fears for Indonesia's Adam Air predicted in coverage on Balidiscovery.com[See: The Eve of Adam Air] have come to past. The Indonesian Department of Transportation has banned all airplanes operated by PT Adam Sky Connection Airlines - the owners of Adam Air, from performing any commercial flights. With their operating permit suspended, Adam Air has been given 3 months to revamp its operation or face the permanent suspension of the air operating certificate (AOC) held by the carrier.

The Director General of Civil Aviation, Budhi Mulyawan Suyitno, told the Bali Post on Tuesday, March 18, 2008, "the banning of all flights by Adam Air are stipulated in a decision from the Directorate of Air Communications number AU/1724/DSKU/0862."

Budhi announced that the grounding of Adam Air took effect from Wednesday, March 19th at one minute past midnight. According to the Aviation Regulator, the decision to ground the Airline was made after a number of deficiencies were discovered in operation areas, manpower regulation and aircraft maintenance. According to Budhi, the preliminary investigation of a recent non-fatal crash of an Adam Air flight in Batam uncovered a number of significant deficiencies, including pilots who were apparently witless on how to handle an in-flight emergency situation.

The Government determined that Adam Air had failed to perform the required training and supervision functions in the implementation of standard-operating-procedures for their fleet of Boeing 737s. Because of this, shortly before the grounding, the Government assumed control of the Airline's check pilot proficiency program for pilots and instructors employed by Adam Air.

In reviewing Adam Air's maintenance programs the Government also found that several spare parts lacked required air worthiness certification.

Like nails in a coffin sealing the Airline's fate, within a single month Adam Air crashed a plane in Batam; saw a 50% investor in the Company suddenly withdraw financial support; was forced to return aircraft to leasing companies when charter payments were missed; and was eventually grounded by a Government order. To some extent the grounding order by the Indonesian government was rendered moot by an almost simultaneous announcement from the Airline that they would suspend services due to their inability to meet an insurance premium payments.

At its commercial height's, Adam Air operated 7 flights a day to Bali's Ngurah Rai International Airport.

More Bad News to Come?

The world of troubles befalling Adam Air precede the anticipated issuance in late March 2007 of official findings surrounding the loss of an aircraft with all 202 souls on board that occurred near Sulawesi on New Year's Day 2007.